Issue of Debt

Telefonica SA
26 October 2000




TELEFONICA S.A., in accordance with that stated in article 82 of the Spanish
Stock Market Law and that set forth in the Circular Letter 14/1998 of the
Spanish Securities Commission of December 28th, 1998, hereby announces the
following:

 On November 17th, and in compliance with the conditions stated in the
Prospectus for the Bond Issue 'November 2000 B' (ISIN code number ES0278430857),
registered with the Spanish National Securities Commission on October 22, 1992,
the remaining 204,393 bonds from this issue will be totally redeemed through the
repayment of the 100% of their nominal value of Ptas 100,000 each.


Madrid, October 19th 2000